Why Is Car Insurance So Expensive in Florida?

Why is Florida car insurance so expensive?

Unique factors in Florida

No-fault insurance laws: Florida's a no-fault state which requires drivers to carry
personal injury protection (PIP)
to cover medical expenses regardless of fault. Since the no-fault system covers more extensive medical treatments, it often leads to
higher car insurance premiums
.
High rate of uninsured drivers: More than 20% of Florida drivers are uninsured motorists2, which increases risk for car insurance companies and, in turn, increases premiums for drivers who do carry insurance.
Severe weather conditions: Florida is prone to hurricanes and flooding, which puts insurance providers at risk for high payouts and raises rates across the board.
Heavy tourist traffic: The state of Florida is a popular tourist destination, bringing in more traffic and bolstering the risk of car accidents.
Expensive healthcare costs: High medical expenses in Florida lead to more costly insurance claims, which forces insurers to hike their rates.
Diverse demographics: Florida's unique demographic mix, including a significant number of elderly drivers and students, swings insurance premiums to the higher side.

Industry-wide and economic factors

Inflation: Inflation has driven up the cost of new and used cars and their parts, and companies continue to face supply-chain issues from the COVID-19 pandemic. High demand and low supply typically results in price increases, which insurers pass on to customers.
Record losses: Following substantial losses, some major insurers like State Farm and LiMu, have increased their rates by about 30 to 40%3. Other companies, like Farmers, have stopped writing policies in the state altogether.

Other factors

Driving history: Tickets and other violations, such as DUIs, will lead to rate increases—safe drivers often pay lower costs
Credit score: Florida is allowed to consider credit score and a low score can negatively impact insurance premiums compared to a good credit score.
Vehicle: Luxury vehicles, sports cars, and electric vehicles typically have higher premiums
Personal profile: Drivers under 25 and over 75 tend to pay higher rates, as do males and people who are single.
Location: Living in an area with lots of traffic or higher theft rates will have you paying more
Coverage limits: Florida drivers may need higher liability limits or add-ons, like
comprehensive coverage
for added protection. Your amounts will change your rates.

Here’s what you can do about it

Switch insurance companies

Explore discount options